CO129-205 - Public Offices - 1882 — Page 178

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PEGO MAY

(No. 4.) (Telegraphic.)

Sir T. Wade to Earl Granville.—(Received February 12.)

MY telegram No. 1.

Peking, February 9, 1882.

Please observe that in this I use "excise" for "li-kin" and "ounces" for "taels." If Her Majesty's Government consent to increase Tariff duty on opium, Chinese Government will ask us to double present duty of 30 ounces.

If Her Majesty's Government sanction the levy, by Foreign Customs, of present Tariff and excise together, Chinese Government will ask for 70 ounces excisc.

Grand Secretary Tso originally wanted 150 ounces excise, then came down to 120. Grand Secretary Li and the Yamén originally wanted 90, then 80, now 70.

Remember that, when I signed Agreement at Chefoo, Li wanted 60 ounces excise to clear opium at the port alone, further tax being leviable inland. The excise now proposed is to clear all opium of all taxation throughout the Empire. Yamên will give any guarantee we require that nothing more shall be levied of

any kind. Believing that Chinese Government had never received more than 40 ounces excise, I held out a long time for this rate, to include ports and inland taxation. Yamên declaring revenue on opium to average 6,000,000 ounces, I argued that this would still imply but an excise of 50 ounces. For this reason I refused to recommend more than 60. I have now promised to recommend 70, on condition that the whole question of internal taxation be finally settled; but I warn the Yamên, both in conference and correspondence, that it rests entirely with Her Majesty's Government to decide what course it will adopt as regards Tariff duty or excise or other arrangements.

Consumption of foreign opium will not be affected even by excise of 80 ounces. Mr. Hart maintains opium could bear 90.

If Her Majesty's Government elect merely to raise Tariff duty, leaving levy of excise, as hitherto, to native officers, these will, I fear, go in for higher rates than those now low. The Grand Secretary Tso, disgusted with his political failure here, has got himself made Minister Superintendent of Southern Trade. If the Central Government fix no rate of excise, he will fix rates of his own in the southern provinces. The Chinese Government lose revenue, but we shall suffer much by general disturbance of the trade.

I shall therefore recommend Her Majesty's Government to sanction levy by Customs of 70 ounces excise, under conditions which involve Her Majesty's Minister of India and Hong Kong. The Cology will gain much by relief from blockade now sustained mainly to watch export of opium in Chinese crafts.

As regards India, no one here, except Tso, has, from first to last, spoken of extinction of the trade.

The Chinese Government is not indifferent to the moral question, but is at present very anxious to secure the revenue on opium. Whatever makes collection of this most regular will best secure the revenue of India. This is my chief reason for preferring fixed rate of excise to increase of Tariff.

I am reporting fully.

Please answer questions with great caution. matter stands.

I have not told my colleagues how the